I think that's one of those decisions that only look better with hindsight though. The merchant model had absolutely monster margins compared to the agency model (especially with bundle deals that provided a defensive moat) and Expedia was in a strong negotiation position vis a vis hotels that they didn't want to lose.
I think a lot of people were surprised at just how much inventory was out there and how much the merchant model hindered going after that extreme long tail.
I think a lot of people were surprised at just how much inventory was out there and how much the merchant model hindered going after that extreme long tail.